Canadian Solar (NASDAQ:CSIQ – Get Free Report) and Maxeon Solar Technologies (NASDAQ:MAXN – Get Free Report) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
Volatility and Risk
Canadian Solar has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Maxeon Solar Technologies has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares Canadian Solar and Maxeon Solar Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canadian Solar | -1.87% | -4.20% | -1.10% |
| Maxeon Solar Technologies | N/A | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Solar | 3 | 7 | 3 | 0 | 2.00 |
| Maxeon Solar Technologies | 1 | 0 | 0 | 0 | 1.00 |
Canadian Solar presently has a consensus price target of $19.36, indicating a potential upside of 43.43%. Given Canadian Solar’s stronger consensus rating and higher possible upside, research analysts plainly believe Canadian Solar is more favorable than Maxeon Solar Technologies.
Earnings & Valuation
This table compares Canadian Solar and Maxeon Solar Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canadian Solar | $5.60 billion | 0.16 | -$104.13 million | ($2.52) | -5.36 |
| Maxeon Solar Technologies | $176.41 million | 0.07 | -$614.30 million | ($163.07) | -0.00 |
Canadian Solar has higher revenue and earnings than Maxeon Solar Technologies. Canadian Solar is trading at a lower price-to-earnings ratio than Maxeon Solar Technologies, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
52.4% of Canadian Solar shares are held by institutional investors. Comparatively, 47.7% of Maxeon Solar Technologies shares are held by institutional investors. 21.5% of Canadian Solar shares are held by insiders. Comparatively, 0.9% of Maxeon Solar Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Canadian Solar beats Maxeon Solar Technologies on 10 of the 14 factors compared between the two stocks.
About Canadian Solar
Canadian Solar Inc., together with its subsidiaries, provides solar energy and battery energy storage products and solutions in in Asia, the Americas, Europe, and internationally. The company operates through two segments, CSI Solar and Recurrent Energy. The CSI Solar segment designs, develops, and manufactures solar ingots, wafers, cells, modules, and other solar power and battery storage products. It offers standard solar modules and battery storage solutions; solar system kits, such as inverters, racking systems, and other accessories; power electronic products; and engineering, procurement, and construction (EPC) services, as well as operates battery energy storage projects. The Recurrent Energy segment engages in the development, construction, maintenance, and sale of solar power and battery storage projects; and operation of solar power plants; and sale of electricity. This segment provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. It has a fleet of solar and battery energy storage plants in operation with an aggregate capacity of approximately 1,005 MWp and 600 MWh. It serves distributors, system integrators, project developers, and installers/EPC companies, as well as utility companies or grid operators, public utilities, licensed suppliers, corporate offtakers, and commercial, industrial or government end users. It sells its products primarily under its Canadian Solar brand name. Canadian Solar Inc. was incorporated in 2001 and is based in Guelph, Canada.
About Maxeon Solar Technologies
Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. The company was incorporated in 2019 and is headquartered in Singapore.
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